WGU C718 Full Study Guide Questions and Answers 2024

WGU C718 Full Study Guide Questions and Answers 2024 What is the definition of economics? - answer-the study of how humans make decisions in the face of scarcity What are economic and accounting profits? - answer-Accounting - profit computed using only explicit costs Total revenue - Explicit costs = accounting profit Economic - profit computed using explicit and implicit costs Total revenue - Explicit costs - Implicit costs = Economic profit What are the characteristics of an oligopoly? - answer-1) few firms 2) barriers to entry What are the characteristics of monopolistic competition? Give your own example of a monopolistically competitive market. - answer-1) large # of firms 2) differentiated products 3) compete on price, quality, and marketing 4) free entry/exit Resturants, furniture stores What are the characteristics or assumptions of the monopoly model? - answer-1) price setter 2) no close substitutes 3) barriers of entry